Primary briefing · Judgment
high impact High Court (Gauteng Division, Johannesburg) · 20 April 2026
City of Johannesburg Metropolitan Municipality and Another v Valuation Appeal Board City of Johannesburg Metropolitan Municipality and Others
The City of Johannesburg's Valuation Appeal Board reclassified a property as a public benefit organisation (PBO) property with retrospective effect. In doing so, the Board declined to apply the City's Rates Policies on the ground that they were inconsistent with the Municipal Property Rates Act (MPRA). The City brought review proceedings in the High Court on the principle of legality.
The court held: The court held that the Board exceeded its statutory powers. Whether framed as a declaration of invalidity or as a refusal to apply policy it considered inconsistent with higher law, the effect was the same: the Board assumed a power reserved for courts. This jurisdictional error materially affected the outcome and vitiated the decision. The Board's reclassification was set aside and the matter remitted to a differently constituted Board for a fresh hearing applying the applicable Rates Policies and statutory framework.
Legal impact: Confirms a clear jurisdictional boundary: Valuation Appeal Boards must apply municipal Rates Policies as they stand and may not decline to apply them on the basis of perceived inconsistency with the MPRA or the Constitution. Any challenge to policy validity must be brought before a court. This curtails a growing practice of Boards second-guessing policy validity during appeals. The court also expressly declined to decide whether use of property without ownership suffices for PBO categorisation under section 8 of the MPRA — leaving that question open and signalling future litigation risk for PBOs operating on property they do not own.
Who is affected
Municipalities administering property ratesMunicipal valuersPublic benefit organisations seeking preferential rate categorisationReligious organisations and mental health care facilitiesProperty owners and ratepayers contesting property categorisationAdministrative and local government law practitioners What this means for practitioners
Review any pending or planned Valuation Appeal Board appeals that rely on arguments challenging the validity or applicability of municipal Rates Policies — those arguments must be redirected to a court of competent jurisdiction.
Advise PBO clients operating on property they do not own that the ownership-vs-use question for PBO categorisation under section 8 of the MPRA remains unresolved; proactive risk assessment is warranted.
Municipalities should ensure their Valuation Appeal Boards are aware of this jurisdictional limitation and apply Rates Policies as binding unless set aside by a court.